SP Angel . Morning View . Monday 28 11 22
China unrest hits copper as fire kills 10 sparking protests over Zero-Covid policies
MiFID II exempt information – see disclaimer below
Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11)* – Appointment of alternative director
Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF)* – Vares construction remains on schedule with first production expected Q3 23
Bushveld Minerals Limited (AIM:BMN, OTC:BSHVF)* – VRFB Holdings sale to Mustang Energy and terms of Mustang convertible
Condor Gold PLC (AIM:CNR, TSX:COG, OTC:CNDGF)* – £4.2m fundraising
Shanta Gold Limited (AIM:SHG, OTC:SAAGF) – Drilling at the Ramula Camp offer potential to expand the resource
KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF)* – Investor Presentation 1 and 2 December 2022 in London
Renascor Resources Ltd (ASX:RNU)* – Approval for Siviour Graphite Mine and Concentrator meets key approval for A$185m government loan funding.
Resolute Mining Ltd (ASX:RSG, LSE:RSG) – Sale of the Bibiani gold mine in Ghana
Rockfire Resources PLC (LSE:ROCK) – Surface outcrop and waste dump sampling results from the Molaoi zinc project
Tungsten West PLC (AIM:TUN) – Management changes
Cyber Monday – Certain mining shares are trading at bargain prices compared with their asset value and forecast valuations
- Interesting bargains include:
- Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF)* - Production, gold and copper – Good dividends, a share buy-back program and strong potential to extend resources and mine life in Azerbaijan
- Arc Minerals Limited (AIM:ARCM)* - Exploration, copper – Anglo American should be close to signing its $100m deal with ARC now the Zambian Department of Mining is reopen.
- Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11)* - Feasibility Study, lithium) – Possibly the best hard-rock, spodumene, project in the world. Great grades, sizeable resource, good logistics from coast in Ghana.
- Bushveld Minerals Limited (AIM:BMN, OTC:BSHVF)* - Production, vanadium – Production is rising and many technical issues have been fixed, though South African blackouts are holding back growth.
- We are banking on grid-scale VRFB battery sales to lift demand for vanadium and for vanadium electrolyte.
- Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF)* – Rainbow’s expert metallurgical experts have teamed up with K-Tech in Florida to develop a new, low-cost extraction process.
- Rambler Metals and Mining PLC (AIM:RMM, TSX-V:RAB)* – for when it comes out of suspension following agreement with its debt providers to either roll over / extend or replace the $17m debt facility.
*SP Angel act as Nomad or financial advisor and broker for these stocks. The analyst currently holds shares in Rambler Metals & Mining.
Gold prices remain subdued as traders await guidance from Fed and US data
- Gold prices have now consolidated gains around the $1,750/oz mark but remain rangebound following a period of limited catalysts last week.
- The dollar has paused its sell off, supporting gold prices, with the index trading around 105 levels since November 11th.
- 10-year Treasury yields have sold off again and are hovering around early October lows, providing relief to gold buyers.
- 2-year Treasury yields have also weakened to 4.442% but remain near 15-year highs.
- Traders await this week’s nonfarm payroll data for a guide to the strength of the US economy and J Powell’s subsequent ability to stick to his plan of taking rates ‘higher for longer.’
- Powell is set to speak this week, with the market anticipating a signal to step down to a 50bp hike in December following four consecutive 75bp hikes.
- Analysts are expecting the Fed Chair to reinforce a hawkish message, with US CPI still soaring above the 2% official target.
- ETFs have been adding gold as investor sentiment improves, with the SPDR Gold Shares fund boosting holdings by 65koz in recent trading.
Copper prices weaken as social unrest and soaring Covid cases in China damage sentiment
- Copper prices fell 2% over the weekend on news of widespread protests across China in response to a recent round of Covid controls.
- A recent round of stimulus measures from Beijing had boosted sentiment for base metals, however these have now been overshadowed by renewed concerns over soaring infections.
- Safe-haven demand triggered by concerns over Xi Jinping’s response to the protests has supported the US dollar, weighing on copper prices.
- Copper futures remain in contango, pointing to lower physical demand for copper.
- Chinese copper cathode premiums have also fallen further in a sign of weakening Chinese demand, although they remain elevated on a seasonal basis.
- Copper inventories declined rapidly since last week, falling 8% having climbed 23% over the course of the month. Inventories remain 46% below the past 5 years’ seasonal average.
Indonesian tin exporters look to government for processing support in run up to export ban
- The Association of Indonesian Tin Exporters has called on the government to provide fiscal, financial and infrastructure incentives to boost downstream tin investment.
- The Indonesian government has warned of a ban on tin ingot exports in an effort to maximise the domestic refining and processing industry.
- The government is aiming to process c. 50% of tin ingots vs the current 5% levels. Government officials are currently carrying out an audit on the industry.
Dow Jones Industrials +0.28% at 34,194
Nikkei 225 -0.35% at 28,283
HK Hang Seng -0.52% at 17,569
Shanghai Composite +0.40% at 3,102
Economics
China – Fire in Urumqui kills 10 causing widespread protest and unrest across China as Zero-Covid policy is blamed for hampering rescue efforts
Hang Seng index drops 4.5%, CSI 300 falls 2.8% protests against Covid restrictions in China.
- Nationwide demonstrations have been reported with discontent surging on news of a fire in the city of Urumqi killing 10 people last Thursday as coronavirus restrictions hampered rescue efforts and prevented residents from escaping the blaze, FT writes.
- Demonstrations were recorded in a number of cities including Beijing, Shanghai and Urumqi, as well as at a handful o top universities.
- Separately, sales of ventilator and oxygen machines jumped since early November on expectations for a further increase in new cases and a potential shortage of emergency rooms’ availability.
China – Unrest continues to build as Chinese people get angry at persistent covid lockdowns and restrictions
- Blurring out the crowds at the Qatar Football World Cup may have caused many Chinese to wonder just how far the PRC is prepared to go to hide the truth from its citizens.
- China may excel at internet censorship and control but its hard to stop the rumour-mill, jungle-drums telling of a mask-free world outside of China.
- We have long been thinking of creating a Chinese ‘Anger Index’ to highlight our perceived state of Chinese unrest against its government.
- Our index is highly subjective and currently stands at ‘Frustrated and Unhappy’ with some ‘Rioting and Anger’
- News of rioting in some cities is becoming more commonplace with yesterday’s demonstrations adding to the number of cities showing their discontent.
- Public protest in China is generally rare with protestors risking long-term internment in correction camps before being returned as reformed communists.
China covid policy hits food security as farmers forced to destroy crops
- Local and state media in China are showing farmers destroying vegetable fields and dumping crops.
- Farmers are reportedly struggling to sell their harvests owing to quarantine and movement controls on truckers and merchants.
- Farmers’ Daily reports than retail prices in cities are soaring whilst farm prices for vegetables are plummeting.
- Such reports are likely to further stimulate dissent among Chinese citizens currently protesting on a scale not seen for decades.
US - Avian Flu hits flocks globally – US Department of Agriculture estimate > 50m birds have been killed by the latest outbreak
Mexico - Final GDP 0.9% qoq in Q3 vs 1.1% in Q2 and 4.3% yoy in Q3 vs 2.0% yoy in Q2
Japan - Manufacturing PMI 49.4 in November vs 50.7 in October
- services 50.0 in November vs 53.2 in October
- Composite 48.9 in November vs 51.8 in October
- CPI 3.8%yoy in November vs 3.5% in October
Germany - Ifo business climate 86.3 in November vs 84.5 in October
- GfK consumer confidence -40.2 in December vs -41.9 in November
Italy - Consumer confidence 98.1 in November vs 90.1
Turkey - Business confidence fell to 97.9 in November vs 100.3 in October
- Capacity utilisation 75.9% in November vs 76.9% in October
Ukraine – Russia is losing and has possibly lost the war to takeover Ukraine
- If Ukraine can cut the few remaining supply lines for Russian troops, the Russian withdrawal may turn into a fast moving rout
- Destroying power generators will make little difference other than harden Ukrainian resistance towards Russia.
Currencies
US$1.0406/eur vs 1.0414/eur last week. Yen 137.96/$ vs 139.11/$. SAr 17.132/$ vs 16.967/$. $1.209/gbp vs $1.208/gbp. 0.670/aud vs 0.674/aud. CNY 7.201/$ vs 7.150/$.
Dollar Index: 106.06 /-0.32% on week
Commodity News
LME looks to resume Asian hours nickel trading within a fortnight
- The LME hopes to restart trading of its Asian hours nickel contract within two weeks. (Reuters)
- The exchange is making concerted efforts to boost liquidity following an exodus of open interest following the nickel short squeeze in March.
- Nickel contracts on the LME have been extremely volatility amid the limited liquidity, with prices jumping 22% this month before paring gains within a week.
Precious metals:
Gold US$1,758/oz vs US$1,754/oz last week
Gold ETFs 94.3moz vs US$94.2moz last week
Platinum US$989/oz vs US$987/oz last week
Palladium US$1,855/oz vs US$1,887/oz last week
Silver US$21.36/oz vs US$21.33/oz last week
Rhodium US$13,300/oz vs US$13,300/oz last week
Base metals:
Copper US$ 7,932/t vs US$8,074/t last week
Aluminium US$ 2,361/t vs US$2,380/t last week
Nickel US$ 25,255/t vs US$26,105/t last week
Zinc US$ 2,929/t vs US$2,924/t last week
Lead US$ 2,128/t vs US$2,130/t last week
Tin US$ 21,910/t vs US$22,105/t last week
Energy:
Oil US$81.0/bbl vs US$86.0/bbl last week
- Crude oil prices fell to their lowest levels of the year as street protests against strict COVID-19 curbs in China heightened concerns about the outlook for global oil demand growth.
- The US Baker Hughes rig count rose by 2 to 784 rigs last week, with oil rigs up 4 at 627 rigs and gas rigs down 2 at 155 rigs, with overall November estimates reflecting the addition of 17 oil rigs and cutting of 1 gas rig.
Natural Gas US$6.620/mmbtu vs US$7.115/mmbtu last week
Uranium UXC US$50.35/lb vs US$50.35/lb last week
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$98.9/t vs US$95.2/t
Chinese steel rebar 25mm US$539.6/t vs US$541.9/t
Thermal coal (1st year forward cif ARA) US$229.0/t vs US$229.0/t
Thermal coal swap Australia FOB US$361.0/t vs US$357.0/t
Coking coal swap Australia FOB US$248.0/t vs US$248.0/t
Other:
Cobalt LME 3m US$51,955/t vs US$51,955/t
NdPr Rare Earth Oxide (China) US$91,090/t vs US$90,919/t
Lithium carbonate 99% (China) US$78,107/t vs US$78,559/t
China Spodumene Li2O 5%min CIF US$6,110/t vs US$6,110/t
Ferro-Manganese European Mn78% min US$1,285/t vs US$1,287/t
China Tungsten APT 88.5% FOB US$31.7/kg vs US$31.7/kg
China Graphite Flake -194 FOB US$880/t vs US$880/t
Europe Vanadium Pentoxide 98% 7.7/lb vs US$7.7/lb
Europe Ferro-Vanadium 80% 31.75/kg vs US$31.75/kg
China Ilmenite Concentrate TiO2 US$313/t vs US$315/t
Spot CO2 Emissions EUA Price US$81.3/t vs US$77.8/t
Brazil Potash CFR Granular Spot US$530.0/t vs US$530.0/t
Battery News
Hyundai and LG Energy considers two EV battery plants in US
- South Korea’s Hyundai and LG Energy Solution are considering building two joint venture battery plants in the United States, according to media reports.
- Both plants would be built in Georgia and each have an annual capacity of about 35GWh, enough to power 1m EVs.
- The plants would help the company meet US EV subsidiary rules, that include tax credits of up to $7,500
- The Inflation Reduction Act will require from next year that at least 40% of the monetary value of critical minerals for batteries be from the United States or a U.S. free-trade partner to qualify for U.S. tax credits.
Company News
Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11)* 42p, Mkt Cap £255m – Appointment of alternative director
- Atlantic Lithium reports that Anna Boldiston has been appointed as an Alternate Director of the Company for Amanda Harsas.
- Ms Boldiston holds no other current directorships.
*SP Angel acts as nomad to Atlantic Lithium
Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF)* 165p, Mkt cap £450m – Vares construction remains on schedule with first production expected Q3 23
- Adriatic provides an update on the construction of Vares Silver project in Bosnia, with 50% of total project construction complete.
- Construction:
- ~56% earthworks completed
- ~45% stockpile pad excavation
- ~85% backfill pad construction
- Diesel generators have been installed ahead of grid connection in Q1 2023
- The lower and upper decline development are 277m and 177m respectively, while Adriatic target the opening of its first stopes in Q2 2023.
- All buildings at the processing plant remain on track for completion in Q1 2023
- Offtake contracts have been executed with Boliden, Trafigura and Transamine.
- The final Project cost estimate remains at $173m, including contingency of $10m.
- The Company's estimated cash balance on 25 November 2022 was $44.4m.
*An SP Angel mining analyst has visited Adriatic Metals operations in Bosnia
Bushveld Minerals Limited (AIM:BMN, OTC:BSHVF)* – 4.64p, Mkt cap £58m – VRFB Holdings sale to Mustang Energy and terms of Mustang convertible
Mustang Energy PLC (LSE:MUST) – 30.6p, Mkt cap £3,15m
(Bushveld holds 84% of Bushveld Energy. Bushveld Energy holds 50.5% in VRFB Holdings Limited.
Valuation 23p
- Bushveld Energy has agreed to sell its stake in VRFB Holdings to Mustang Energy for US$19.4m worth of new Mustang shares at 20p/s which converts into 79.4m new shares.
- VRFB Holdings holds a 50% interest in Enerox Holdings which has five new orders for 34MWh of VRFB battery capacity including a single 16MWh battery.
- Bushveld Energy has the right to appoint two new directors to the board of Mustang Energy
- Bushveld Minerals also holds a US$2.75m convertible loan notes in Mustang with a 10% coupon and conversion price of 17p/s equating to 13.4m new shares.
- Mustang Energy shares are currently quoted at 30.6p with a market capitalisation of 3.15m with around 10m shares currently in issue.
- Bushveld Minerals and Bushveld Energy jointly hold a 51.5% stake in Mustang Energy, though this may be further diluted on listing in London.
- If the convertibles are exercised, Bushveld Minerals could hold an indirect interest of 25.76% in Enerox.
- Full details on the transaction can be found at https://www.investegate.co.uk/mustang-energy-plc--must-/rns/acquisition-of-additional-interest-in-vrfb-h/202211280830006973H/.
- Loads shedding: While load shedding is restricting production and processing for many miners in South Africa we also see the ongoing ESKOM load shedding in South Africa as providing the perfect market environment for the deployment of new power storage systems.
- Bushveld’s PV Mini Grid to be based at Vametco should provide a good test site for management’s new combined solar and VRFB storage system
- Valuation: Our NPV valuation on our forecast Bushveld cash flows values the group at 23p. This includes ~10p/s for the electrolyte plant being built by Bushveld Energy. We see the future rollout of VRFB ‘Vanadium Redox Flow Batteries’ in South Africa for the storage of renewable energy in as a significant driver for vanadium pentoxide demand for the business going forward.
Conclusion: We are optimistic and enthusiastic over the technology for Vanadium Redox Flow Batteries and view today’s transaction as a step towards the development of future value in Mustang Energy.
Condor Gold PLC (AIM:CNR, TSX:COG, OTC:CNDGF)* 18.75p, Mkt Cap £33.7m – £4.2m fundraising
- Condor Gold, which announced last week that it was seeking a buyer for its La India gold project in Nicaragua, has now announced plans to raise an additional £4.2m through a combination of a £1m Convertible Loan Note and a £3.2m pre-emptive rights issue priced at 15p/share.
- The company has already received the £1m Convertible Loan Note funds from its 18.7% shareholder, Galloway Limited, a wholly owned subsidiary of Burnbrae Group, which is “in turn, wholly owned by Jim Mellon, Condor's Chairman”.
- The Loan Notes, which carry a 17% annual coupon, “will automatically convert into New Ordinary Shares at £0.15 per New Ordinary Share if at least £1 million is raised under the Open Offer from shareholders other than Galloway” and in the event that they are not converted “are repayable by the Company 12 months after the date of issue”.
- The Loan Notes “have a 2.5 for 1 warrant attached … [and] … have an exercise price of £0.15 and an 18 month term”.
- The proposed issue of shares will be “offered to all Qualifying Shareholders on a pre-emptive basis for each 6 Ordinary Shares held” and the shares will be offered at 15p/share.
- Condor Gold describes the background to the fundraising, and possibly also the rationale for the decision to offer La India for sale, saying that “equity markets have been difficult of late and the impact of US Sanctions as notified on 27 October 2022 has delayed financing. A prior offer of equity financing was subsequently withdrawn whilst the Company rejected a secured debt facility”.
- Mr. Mellon encouraged “existing shareholders to take up their pre-emptive rights under the open offer… [and explained that the] … Company's La India Project is almost construction ready, with the key permits to construct and operate a mine, a bankable feasibility study completed, a SAG Mill and surface rights purchased. Initial production is targeted at 100,000 oz gold p.a. with an expansion to 150,000 oz gold p.a.”
- He reiterated that Condor Gold’s recently announced strategy “is for the Company to sell the assets. The fundraise allows the Company to enter a sale phase sufficiently funded”.
- In October, Condor Gold released details of its feasibility study into the development of an open pit gold mine at La India which showed that the La India open-pit is expected to deliver an after-tax NPV5% of US$86.9m and IRR of 23% (at a gold price of US$1,600/oz) from the investment of US$105.5m to mine a probable ore-reserve of 602,000oz of gold and 1.25moz of silver over an 8.4 years mine life at La India.
- The feasibility study plan does not incorporate the development of the nearby satellite operations at America, Mestiza and Central Breccia or the emerging Cacao deposit which, we understand will all be accessible to the La India processing plant providing an opportunity to blend higher grade mineralisation into the mill-feed and enhance gold production during the initial years of production.
- The plan for La India, which also has mineralisation amenable to underground mining, envisages treating ore from the La India open-pit at a rate of 0.89mtpa over 9 years to produce an average of 81,545oz of gold for the first five years of production with higher grades treated in the earlier years and lower grade material stockpiled for later processing.
Conclusion: Condor Gold is topping up its finances as it seeks a buyer for its Nicaraguan project at La India.
*SP Angel act as a broker to Condor Gold
Shanta Gold Limited (AIM:SHG, OTC:SAAGF) 9.75p, Mkt Cap £102m – Drilling at the Ramula Camp offer potential to expand the resource
- The Company released results from the infill drilling programme at the Ramula deposit as well as drilling at adjacent exploration targets at the West Kenya Project, Kenya.
- Initial results suggest the Ramula Camp can grow to at least +1.5moz project area, in addition to 1.1moz established at the Isulu/Bushiangala Camp.
- Three new targets (Anomaly 22, Miruka and Ochiegue) are all located within 5km radius of the Ramula deposit and potentially present exciting additional open pit and underground development opportunities.
- The Ramula deposit is located 40km W-SW from the Isulu-Bushiangala deposit and currently hosts 434koz at 2.08/g in total resource (all Inferred).
- The team is planning to release an updated MRE for the Isulu/Bushiangala Project before YE followed by an MRE update for the Ramula deposit.
- ~6,000m of infill drilling have been completed at the Ramula deposit through to October.
Conclusion: High grade mineralisation encountered in the latest round of drilling at adjacent targets at the Ramula deposit located 40km from the Isulu-Bushiangala deposit (1.1moz at 10.8g/t in MRE) offering a potential to grow the latest Ramula Maiden MRE (0.4moz at 2.1g/t).
KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF)* 0.87p, Mkt Cap £34m – Investor Presentation 1 and 2 December 2022 in London
- The Company will present hold two presentations this Thursday and Friday to update the market on plans for the remainder of 2022 and 2023.
- Presentations will be held at 4pm on 1 and 2 December 2022 at the Hilton London Angel Islington Hotel (adjacent to venue for the Mines and Money London Conference).
- Reiterating its development plans, the Company is expecting:
- Signing of definitive documentation in regards of the Tulu Kapi project funding and project launch by YE;
- KEFI is targeting 70-80% interest in the Project with most of the financing coming at the project level to minimise dilution at the KEFI level;
- Jibal Qutman (30% interest) DFS completion is targeted for early 2023 with construction wot commence within six months of the Tulu Kapi Project;
- Hawiah (30% interest) MRE update is expected in Dec/22 with PFS due in early 2023 reflecting expanded resource.
*SP Angel act as Nomad to KEFI Gold and Copper
Renascor Resources Ltd (ASX:RNU)* A$0.22, Mkt Cap A$455m – Approval for Siviour Graphite Mine and Concentrator meets key approval for A$185m government loan funding.
- Renascor has received PEPR approval from the South Australian Department of Energy and Mining (DEM) for the Program for Environment Protection and Rehabilitation (PEPR) for its proposed Siviour Mine and Concentrator in South Australia.
- The PEPR approval permits Renascor to process up to 1.65mtpa enabling 150,000tpa pa of Graphite Concentrate.
- Approval of the PEPR is the second step, following the previous grant of the Siviour Mineral Lease, in South Australia’s two-stage assessment process.
- The approval enabled Renascor to advance the development of the upstream Graphite Mine and Concentrator portion of the Siviour Battery Anode Material Project.
- Management are working on full vertical integration for the manufacture of value-added anode material in South Australia.
- The PEPR approval satisfies a fundamental condition of the Australian Government’s A$185m loan facility offered to fund Renascor’s integrated Siviour Battery Anode Material Project.
- Renascor updated its JORC mineral resource for the Siviour Graphite Deposit in South Australia in August.
- The total Measured, Indicated and Inferred estimate now consists of 93.5Mt @ 7.3% TGC for 6.9Mt of contained graphite – with 67% classified as Measured or Indicated.
- Siviour is currently the second largest reported Proven Graphite Reserve in the world, supporting a 40-year mine life with production of Graphite Concentrates up to 150,000 tonne per annum.
*SP Angel has formerly acted as broker to Renascor
Resolute Mining Ltd (ASX:RSG, LSE:RSG) 10.9p, Mkt Cap £186m – Sale of the Bibiani gold mine in Ghana
- Resolute Mining confirms that it has now received the third and final tranche of $10m from Asante Gold for the sale of the Bibiani gold mine in Ghana.
- The sale of Bibiani comprised three tranches payable each of $10m with a further $2.7m payable in respect of an environmental bond. Today’s announcement confirms that Resolute Mining “and Asante are in commercial discussions regarding payment of the environmental bond and interest”.
- In August 2021, Resolute Mining described the Bibiani mine as “a historically significant Ghanaian gold mine situated in the western region of the country … [and said that] … Bibiani has been a major gold producer in Ghana … [which] … has available mining and processing infrastructure on site consisting of a 3 million tonne per annum mill and processing plant, and existing underground mining infrastructure” with a mineral resource of “21.7 million tonnes at 3.6 grams of gold per tonne for 2.5 million ounces of gold”.
Rockfire Resources PLC (LSE:ROCK) 0.19p, Mkt Cap £2.5m – Surface outcrop and waste dump sampling results from the Molaoi zinc project
- Rockfire Resources reports that sampling of historic waste dumps and surface outcrops around old mine workings at the Molaoi zinc project in Greece has returned assays of up to 25% zinc, 16.8% lead and 498g/t silver.
- The company confirms that the best results were obtained from the Kalamaki prospect, where it has a resource of “2.3Mt @ 9.4% Zn, 1.7% Pb and 47g/t Ag” and where geotechnical drilling is currently underway and “progressing well”.
- The company says that “9.3% Zn has been found in old workings at the "Fournos" prospect, approximately 1.5km north of the JORC mineral resource” as well as 15.8% zinc from old workings at the Mesovouni prospect located around 1km northwest of the resource area.
- Samples of outcropping mineralisation located north of the Gkagkania prospect 1.5km north of the Kalamaki resource assayed 8.7% zinc, 5.2% lead and 161g/t silver.
- Chief Executive, David Price, said that the results emphasise “the quality of targets to the north and northwest of the main resource area. Some of these targets have been drilled previously by the Greek government and encountered high-grade zinc, lead and silver in drilling”.
Conclusion: Rockfire Resources reports encouraging assay results from surface outcrop and historic mine waste and we await results from the current Molaoi drilling campaign with interest.
Tungsten West PLC (AIM:TUN) – 16.75p, Mkt cap £30m – Management changes
- Tungsten West reports that Chairman, Robert Ashley, will be retiring from the role and will be replaced by senior independent non-executive director, David Cather.
- The role of senior non-independent director is to be assumed by Mr. Martin Wood, who is described as the “founder of Vicarage Capital Limited (LSE:CAPD)” and is currently non-executive Chairman of Altona Rare Earths Limited.
- Executive Vice-Chairman, Mark Thompson thanked Mr. Ashley for “his considerable efforts in our journey to restarting Hemerdon, which continues to advance” and wished him well in his retirement while welcoming Messrs Cather and Wood to their new roles.
- In October, the company provided a progress report on its plans to reopen the Hemerdon tungsten mine in Devon confirming that it had placed orders for the long-lead-time equipment required and that it expected “to complete its independently reviewed updated Feasibility Study before the end of November 2022”.
Conclusion: We await the outcome of the updated feasibility study for the reopening of the Hemerdon tungsten mine with interest as Tungsten West redeploys and refreshes its Board.
No.1 in Copper: “The winner of the 2020 Fastmarkets Apex contest for copper was the team at SP Angel comprising John Meyer, Sergey Raevskiy and Simon Beardsmore, with an accuracy score of 93.8%”
No1. In Gold: “SP Angel’s trio took the top spot for the gold price prediction throughout the year, with an accuracy score of 97.59%”
The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020
Analysts
John Meyer – John.Meyer@spangel.co.uk – 0203 470 0490
Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484
Sergey Raevskiy –Sergey.Raevskiy@spangel.co.uk - 0203 470 0474
Joe Rowbottom – Joe.Rowbottom@spangel.co.uk - 0203 470 0486
Sales
Richard Parlons –Richard.Parlons@spangel.co.uk - 0203 470 0472
Abigail Wayne – Abigail.Wayne@spangel.co.uk - 0203 470 0534
Rob Rees – Rob.Rees@spangel.co.uk - 0203 470 0535
Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471
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*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)
+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.
Sources of commodity prices
Gold, Platinum, Palladium, Silver - BGNL (Bloomberg Generic Composite rate, London)
Gold ETFs, Steel - Bloomberg
Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt - LME
Oil Brent - ICE
Natural Gas, Uranium, Iron Ore - NYMEX
Thermal Coal - Bloomberg OTC Composite
Coking Coal - SSY
RRE - Steelhome - Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphit - Asian Metal
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SPA research ratings – Based on a time horizon of 12 months: Buy = Expected return of more than 15%, Hold = Expected return between -15% and +15%, Sell = Expected return of less than 15%